49989 Operations Engineering
Please select only one of the following case studies for your assignment:
Case A. Tesla Motors
Tesla is an innovative manufacturer that designs, assembles and sells fully electric vehicles, along with a variety of products, for an instant, charging stations, battery products and automated driving systems. Tesla has achieved huge success with the launch of its midsize electric “Model X” in 2015, due to the increased awareness of environmental issues such as climate change impact and affordability. Consumers, now, have the tendency to switch from buying a traditional petrol-powered vehicle to Tesla’s new fully electric cars. Therefore, with limited competitors in the electric vehicle market, Tesla has obtained a significant amount of market share.
How could they further update their model range?
Case B. Samsung
Samsung Group is a South Korean multinational conglomerate which comprises numerous affiliated businesses, most of them united under the Samsung brand. It is the largest South Korean business conglomerate. Among the five business units of Samsung, Samsung Electronics is the outstanding one. In 2007 Samsung Mobile Phones and Telecommunication Business reported over 40% growth and became the second largest mobile device manufacturer in the world. “Samsung Galaxy S20” Android smartphones (as part of the Samsung Galaxy S series) are among the most successful versions produced by Samsung Electronics and were in high demand at release.
How could Samsung further update their range of high-end smartphones?
Case C. Patties Foods
Patties Foods, is an Australian food manufacturing company that produces meat pies, baked goods, frozen fruits, and pre-made desserts. It was publicly listed on the Australian Stock Exchange since 2006. In 2007, Patties acquired the Chef’s Pride and Creative Gourmet businesses, and introduced gluten free foods to its product roster. Since its founding, it has grown into one of the largest pie manufacturers supplying the grocery market in Australia. “Patties Pies” are the original flagship product of Patties Foods. Pies, pasties, sausage rolls and quiches in three different sizes (standard, party and mini party), there is also a gluten free range of patties pies. In the early years of the 21st century, Patties were the second largest selling pie in Victoria and held 15% of the Australian national market.
How could Patties further update their offering with new products?
Task: Write a report about the operational impacts of a new or updated product or service
1. Executive summary
Write a short executive summary.
This summary needs to presents the key issues and facts of the report in a concise form. It should include:
- The purpose of the report
- The main findings
- The conclusion and recommendations
Write a short introduction.
The introduction should include the background of the chosen case study and an explanation of its main operations. This may include e.g.:
- Nature of its operations (manufacturing, non-manufacturing, or combination, ),
- Type of customers, market segments, method of sales, after-sales service, ,
- Organisational size, locations, single or multi-site operations,
- Type of products and services,
- Method of product/service creation,
- Production, distribution,
It should also include a brief description of your idea for a new or update product/service.
Then, briefly set out an explanation of how you tackled the case and how the report is organised.
3. Assess your new product idea
a. For the organisation you have chosen, use De Bono’s Six Hats Thinking model for an initial assessment of your idea for a new product/service. Each hat should have at least 4 items on it.
b. Develop a Design Review checklist consisting of a minimum of 25 questions distributed evenly over the various aspects (minimum six different aspects) of your new product.
Complete the DR checklist by providing answers to the review questions and additional comments.
c. Write a brief discussion on the outcomes of the 6 hats and the DR.
4. Design the operations
a. Construct a value stream map (VSM) for the new It should have a supplier at the one end and a customer at the other end, an information flow with a minimum of one core activity, a material flow with at least five steps, and a location and description of at least three inventory locations. You should also enter the value added and non- value added times for all core activities and inventories, and determine the ratio of value added and non-value added times.
b. For the same five value-adding process steps, construct a production (layout) floor plan. Use the layouts discussed in class (process, product, cell and fixed) as Determine the location of equipment, personnel, inventory, etc. as well as the flow of materials/goods with their proper names.
c. For one of your operational processes of your choice pick a particular Identify its root cause(s) by using the 5-Why methodology (apply at least 5 x Why). Determine a suitable action to eliminate/reduce the root cause(s).
d. Assume a fictitious constraint (bottleneck) in your production Describe what specific actions you could take to overcome that constraint using the TOC’s Five Focusing Steps. You can use the headings of the Five Focusing Steps, but the actions (details under the headings) should be specific and relevant to your constraint.
e. Now, looking beyond your company borders, develop a Supply Chain Map consisting of at least five elements/modules/functions for your product or Describe specifically how these elements/modules work together to ensure a seamless supply chain operation for your product or service. Generic descriptions will not be accepted; they should be specifically related and relevant to your product or service.
f. Write a discussion summarising your activities in this Outline, how the VSM could be improved and why you picked the production layout etc. Also, briefly reflect on how a KANBAN system could be integrated into your process.
5. Assess the performance of your operations
1. Determine the Inventory Reorder Point (ROP), Safety Stock and Economic Order Quantity (EOQ) for your product or service based on the following parameters
Please make sure that you do the calculations only for your selected case.
Demand (D) per week = (500 to 1000 per week)
Lead Time during replenishment (L/T) = a number between 4 and 6 weeks
Standard Deviation of demand during replenishment (SD) = 10%.
Carrying cost (H) per week = a number between $10 and $50
Fixed cost of order (S) = a number between $500 and $1000
Service Level = a number between 80% and 95%
Demand (D) per week = (500,000 to 1,000,000 per week)
Lead Time during replenishment (L/T) = a number between 1 and 2 weeks
Standard Deviation of demand during replenishment (SD) = 15%.
Carrying cost (H) per week = a number between $1and $5
Fixed cost of order (S) = a number between $100 and $200
Service Level = a number between 80% and 95%
Demand (D) per week = (50,000 to 100,000 per week)
Lead Time during replenishment (L/T) = a number between 1 and 3 weeks
Standard Deviation of demand during replenishment (SD) = 5%.
Carrying cost (H) per week = a number between $0.50 and $2.00
Fixed cost of order (S) = a number between $5.00 and $10
Service Level = a number between 90% and 95%
b. For one of the production equipment pieces, determine it’s reliability based on a fictitious MTBF and calculate the probability of a failure to occur after a certain time of its intended operation
c. For the same equipment for which you have earlier calculated the probability of failure, calculate the OEE (which should be less than 85%).
d. Determine at least five actions to improve its OEE.
e. Pick a 2-step process within your operational Then assume a certain throughput and that you have produced a small number of defective items, say between 3-5% at step 1, and between 5-7% at step 2. For defects, assume a number that must be larger than the defective items observed at each step. Now, determine the performance metrics Yield (defective), RTY (defective), Yield (defect), and RTY (defect) for this process.
f. Provide a brief interpretation of the obtained results in this section.
6. Digital technologies for LEAN operations
Now, it’s time to look at ways to further optimise your operations using new digital technologies in the realm of Industry 4.0.
As part of Industry 4.0, the Internet of Things (IoT) connects the entire value chain through an end-to-end digitization to network all physical assets. With the help of autonomous communication of technologies and devices, a new level of organisation and control of value chains is to be achieved. This offers companies considerable potential for process optimisation and new business opportunities. The technological possibilities to link resources, information, objects and people is the basis of these developments. The IoT can be defined as the network of physical devices, vehicles, home appliances and other items embedded with electronics, software, sensors, actuators, and network connectivity, which enables these objects to connect and exchange data.
a. Write a brief analysis of how the technological capabilities of the IoT could be used to improve production/service processes from the perspective of LEAN operations (1 page).
b. Identify 3 relevant forms of waste (from the LEAN context) and explain for each waste form where and how it could occur in your operational Determine at least one possible root cause for each waste example (one paragraph per waste form).
c. Explore, how the new capabilities of the IoT can help optimise your operational setup by reducing Please discuss how previously identified IoT capabilities (in a) could be used to address the previously identified root causes for waste (in b). Briefly discuss costs and benefits for each waste form and close with a recommendation for next steps.
Write a short conclusion.
This section opens with a brief summary of the report and then draws conclusions from the data presented. No new material should be introduced in this section.